Aryl hydrocarbon hydroxylase induction in the eye of responsive mouse strains appears to be under the same genetic regulation as that in the liver. The hydroxylase activity can be induced in cultured cells of chick embryonic retinal pigmented epithelium by benz(a)anthracene. All known mouse strains which develop retinal degeneration are aromatic hydrocarbon responsive strains. Phenolic products of the hydroxylase reaction have a marked labilizing effect on lysosomal membranes. On the basis of these observations, a possible correlation between aryl hydrocarbon hydroxylase inducibility and retinal degeneration is suggested.